Alexis Minerals (AMC-T) is steering its Lac Pelletier gold project near Rouyn-Noranda, Que., towards a production decision, but first the company is getting the mine and the property ready for a 40,000-tonne bulk sample.
Alexis was just issued a permit for both underground exploration and the bulk sample.
The company will soon start clearing the site so it can construct the required buildings as well as the settling ponds for dewatering a ramp and underground workings that were excavated in 1992. Hydro Quebec has nearly finished repairing the electricity supply line.
The dewatering will start in early 2008 and will be followed by the development of a ventilation raise to surface and underground exploration that will include lateral drifting, ramp extension and drilling.
The results from the bulk sample will determine whether Alexis will continue with production.
Alexis has an option to earn 100% of the project from Thundermin Resources (THR-T, TUDMF-O) but it must make its decision by September 2008. Alexis can delay production for one year but would have to pay Thudermin $75,000. Otherwise, once production starts, the project is subject to a 1% net smelter returns royalty to Xstrata (XTA-L) and a 2.5% NSR to Thundermin.
Using a cut off grade of 5 grams gold per tonne, Lac Pelletier has a measured and indicated resource of 61,000 tonnes grading 6.19 grams gold per tonne and an indicated resources of 558,000 tonnes grading 8.43 grams gold per tonne for a combined total of 163,000 oz. gold, and an inferred resources of 175,000 tonnes grading 7.45 grams gold per tonne or 42,000 oz. gold.
Alexis shares were down about 2 to 86 in Toronto today on a trading volume of 280,000 shares.
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